I-Team: Questions mount on lucrative deal to outfit NOPD officers

Whether a parish deputy, state trooper or officer walking the beat, what they wear is an essential part of the job and the New Orleans Police Department, like other agencies, sets the rules -- from their officers’ shirts and pants to their rain coats. All items must be in tip-top shape.

However, one local business and police association say City Hall is putting a wrinkle in the outfitting process, risking some problems.

Charlie Hewlett outfits police officers. His store, American Police Equipment, on Airline Highway, is a repository of officers’ outerwear since 1977, serving several police and fire departments across southeast Louisiana.

Since 1977, New Orleans Police Department officers have routinely come in to buy their gear.

In the past, each NOPD officer received a $500 annual bonus from the city to buy their uniforms and supplies. With more than 1,000 cops on the force in New Orleans, that's $500,000 in business for Hewlett every year.

This year, New Orleans Mayor Mitch Landrieu’s administration changed the policy of giving the officers money directly, and instead, City Hall put out a request for proposals, asking local companies to bid on the uniform costs.

The idea eliminates the $500 stipend to the officers in favor of a contract with a local business that would outfit them all, then bill the city at year’s end.

Hewlett’s company submitted a bid.

However, the city awarded the contract, worth $500,000 a year, to a company called Signal 26.

A representative with City Hall said the company scored the deal because it was the lowest bidder, but according to the Louisiana Secretary of State Office’s website, at the time that the contract was awarded to Signal 26, the company was not in good standing, having failed its annual financial report.

The government website lists the company’s mailing address as a home on Filmore Avenue in Lakeview and listed Rachel Hurst as its agent.

The company has no storefront or sign hanging outside, and the home doesn’t immediately resemble a business.

Hurst says that the appearance of the business is no reason to fret, and the criticism of her business is “allegations made by a sore loser.”

Hurst claims the city did its due diligence when awarding Signal 26 the contract.

When it won the bidding battle, the company notified officials that it actually does business as a company operating under a different name, Code 3.

The practice of bidding on government work through a “paper company” is uncommon, but completely legal.

Code 3 has two locations -- one in Mandeville and another in Mid-City -- and those appear more like a traditional business operation.

When the NOPD contract went out to bid, the Secretary of State’s website again listed Rachel Hurst as a company officer with Code 3, but below her name was Rebekah Hoffacker, who was also listed as a company officer.

Hoffacker identified herself as the person in charge when the I-Team visited the store. Hoffacker is married to New Orleans police Officer Charles Hoffacker.

Local laws bar the spouses of city employees, such as an officer, from doing business with City Hall.

Hewlett said he can’t figure out why the company was awarded the contract.

“Even if any of these allegations could stick, he's still not the low bidder, and at the end of the day, we were substantially lower than his overall bid,” Hoffacker said.

Hewlett ended up filing a lawsuit against the city, asking a judge to dismiss the bid made by Signal 26 on behalf of Code 3.

Last week, a civil court judge ruled in favor of Hurst. Now, Hewlett is appealing the decision.

Hurst said that after she became aware of the conflict, she decided to buy out Hoffacker, claiming she paid a lump sum to her and would receive additional payments until she is made whole.

Hoffacker could eventually benefit with profits made from the NOPD contract.

“If I was an outsider looking in, I'd probably think the same thing because I’ve seen these stories all the time and you wonder, in this case, if we were competing against someone else not so hellbent on making sure this gets overturned -- I don't think this comes to light,” Hurst said.

Raymond Burkart with the Fraternal Order of Police worries that in the end, it’s the men and women behind the badge who could come out on the short end of the uniform fracas.

“The big loser in all of this is the police officer who is trying to stay in compliance and get equipment he or she needs to do her job,” Burkart said.

The WDSU I-Team has obtained five letters sent to the city from some of the largest police uniform and equipment suppliers in the country.

A representative of each company told City Hall and New Orleans Purchasing Director Mary Kay Kleinpeter-Zamora that Signal 26 is not an authorized distributor of their product line.

Levanthal LDT, one of the leading police shirt manufacturers in the nation, doesn’t list Code 3 as a licensed distributor.

Neither does Gerber Outerwear, one of the largest distributors of police rain jackets and overcoats.

Despite that, City Hall went forward with the deal.

A representative with City Hall told WDSU that Signal 26 was thoroughly vetted prior to winning the contract, and the city is confident that the company can deliver.

“It's an extremely unethical tactic, I've seen it in the past but not to this extent,” Hurst said.

However, Hewlett said he’s not giving up his legal fight to provide gear to the NOPD.

“What we are hoping is someone will say, ‘Hey, something isn't right,’” he said.

After the I-Team reached out to all the parties in this report, Hurst straightened out matters with the Secretary of State and moved Signal 26 into good standing by submitting her financial report. The move came well after the city sent out proposals and the contract had been awarded.

Hurst also removed Hoffacker’s name as a partner in Code 3.

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